Gold: Near term prices could be poised for a consolidation lower – TD Securities
|According to TD Securities analysts, the slight risk-off tone to start the morning has supported gold north of $1,500/oz mark, but recent dollar strength continues to constrain any excitement on the day.
Key Quotes
“The market is anxiously anticipating Fed Chair Powell's Jackson Hole speech on Friday, which could prove to be a disappointment for the market. Indeed, our rates strategists note that the Committee is divided on the outlook for rates and the impact of weak global growth and trade uncertainty on the US remains uncertain, while financial conditions have not tightened materially — which may embolden the Fed to stay the course and ultimately set markets up for a disappointment this week.”
“With gold positioning firmly skewed to long exposure, disappointing market expectations suggest prices could be poised for a consolidation lower in the near term, but any downside will likely be contained as a weakening economy, growing negative debt pile and dovish global central banks remain a strong platform for the yellow metal moving forward. As for the industrial precious metals, we estimate that CTAs remain sellers of platinum with downward momentum gaining strength.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.